LI AUTO(US:LI) Guo Ji Jin Rong Bao·2025-08-30 01:13Core Viewpoint - Li Auto's second-quarter performance report reveals a decline in vehicle sales revenue, indicating a shift towards a "price-for-volume" strategy amid increasing market competition [4][5]. Financial Performance - The company reported a revenue of 30.2 billion yuan for the second quarter, a 16.7% increase quarter-on-quarter but a 4.5% decrease year-on-year, falling short of market expectations of 32.47 billion yuan [4]. - Net profit stood at 1.1 billion yuan, reflecting a 69.6% increase from the previous quarter but a slight year-on-year decline of 0.4% [4]. - Vehicle sales revenue was 28.9 billion yuan, down 4.7% year-on-year, marking the first negative growth in sales revenue [4]. Market Dynamics - The company delivered 111,000 new vehicles in the second quarter, a 2.3% year-on-year increase and a 19.6% quarter-on-quarter increase, yet the corresponding vehicle sales revenue declined [4]. - Increased competition has pressured Li Auto's pricing strategy, with rival Leap Motor capturing significant market share and the AITO M9 surpassing Li Auto's L7, L8, and L9 combined sales [4]. Profitability and Cash Flow - Despite revenue pressures, the overall gross margin reached 20.1%, up 0.6 percentage points year-on-year, attributed to cost reductions [5]. - However, cash flow concerns arose, with a net cash outflow from operating activities of 3 billion yuan, significantly higher than the 430 million yuan from the previous year [5]. Product Strategy and Challenges - The i8 model, crucial for the company's electric transformation, faced market skepticism due to perceived high pricing and low configuration, leading to a rapid adjustment in its offerings [5][6]. - Controversy surrounding a crash test video of the i8 has negatively impacted its market reception [6]. Future Guidance - For the third quarter, the company expects deliveries between 90,000 and 95,000 vehicles, representing a year-on-year decline of 37.8% to 41.1%, with projected revenue of 24.8 to 26.2 billion yuan, down 38.8% to 42.1% year-on-year [8]. - The upcoming i6 model is anticipated to play a crucial role in the company's strategy, positioned to compete in the mid-range electric vehicle market [8]. Organizational Changes - The company has initiated a significant restructuring of its sales system to enhance responsiveness to market changes, merging sales and service teams with R&D [9]. - The new organizational structure aims to improve customer experience and operational efficiency, with plans for new vehicle launches proceeding as scheduled [9].